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0 sats \ 3 replies \ @jgbtc 22 Oct \ parent \ on: Minneapolis Fed's paper on banning Bitcoin to maintain "permanent deficits" bitcoin
You are forgetting one thing. While governments are doing all this, they are also making sure fiat money is an increasingly unattractive option to hold, and at an accelerating pace.
So there are two forces at play. One is as you describe where government pressures people to turn over their bitcoin, and you're right, some people will. The other is the force of survival that people have in the face of debasing money.
There are many examples in history where people risk life and limb to smuggle their wealth out of bad situations. You seem to think this survival instinct has disappeared from humanity. It is alive and well and Bitcoin makes it easier than ever compared to what refugees throughout history have done. Don't underestimate the motivation debasing money gives to people.
Good point.
Hope enough people are prepared to stand up and fight for the right to hold Bitcoin privately. Perhaps there will be.
It's yet to be decided but IMO we have to be prepared and realistic about the probability they will seek to shut Bitcoin down.
Saying it will never happen just means if/when it does you will not be prepared for it - and that suits them just fine!
BE PREPARED!!!
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I agree with you. People will not give up, Bitcoin is so special.
However... an unmovable wall (government debt) is (finally?) coming into contact with an unstoppable force - Bitcoin.
And I'm not exactly sure what that will look like. Beyond the ECB and FED papers of late we're familiar with. Some sort of... unresolved conflict.
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Like most Bitcoiners you ignore the reality that as the USD fiat global hegemony has been declining since the Chinese economy and Chinese model of global resource hegemony has been building, relentlessly. This is understandably uncomfortable for Libertarians as it is runs counter to their belief that free markets will always rule supreme- history tell a very different story.
As the tertiary layer of the global network of infrastructure that China is building China is developing protocols to enable competition with the US legacy institutional and protocols which have emplaced and enforced US hegemony.
One of the most important of these Chinese protocols is its CBDC Yuan...sometimes called DCEP or E-Yuan.
DCEP is designed to greatly increase the efficiency of the Yuan fiat system and to enable very swift and efficient international trade payments outside of and free of the USD SWIFT hegemony.
Compared to Chinas already developed internal and external digital payments capacity Bitcoin is a midget.
It is far more likely that the Chinese CBDC will emerge as the major replacement of the USD.
All nations must trade with China or suffer serious consequences and from mercantile market dominance monetary dominance has almost always followed.
Do not think Bitcoin is the inevitable successor to the USD- it is not.
Bitcoin will probably play a minor role, especially in pockets of activity where Chinas advance is most strongly resisted- ie the 'western liberal democracies' who have been the major beneficiaries, allies and tributaries to the USD, but against the Chinese CBDC Bitcoins importance looks likely to be relatively minor.
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